UBS
set to exit fixed income, fire 10,000 bankers
ZURICH (Reuters) - UBS is expected to reveal plans on Tuesday to wind down its fixed income business and fire 10,000 bankers, with shareholders cheering one of the biggest bonfires of finance jobs since the implosion of Lehman Brothers in 2008.
The move will focus Zurich-based UBS (UBSN.VX) around its private bank and a smaller investment bank, ditching much of the trading business that saw it lose $50 billion in the financial crisis and one rogue trader lose $2.3 billion last year.
Chief Executive Sergio Ermotti is expected to announce plans for a slimmer, less risky investment bank focused on equities, foreign exchange trading and giving corporate advice.
Investors are keen for details on how the Swiss bank will wind down the fixed income unit without incurring big losses. Employees complain they have been in a state of limbo after months of rumors of cuts.
"It's becoming like torture, especially for those that don't think they will be compatible with the new Orcel team," said one employee, referring to Andrea Orcel, a close ally of Ermotti from Bank of America (BAC.N) who arrived in July and is expected to run the investment banking unit's remaining businesses.
Bankers were already anxiously awaiting news of an initial 400 job cuts set to hit this week, though that will likely be just the beginning of a cycle of layoffs that will hit those in fixed income trading the worst.
A smaller investment bank would leave UBS to focus on its private bank, which looks after the affairs of rich people. It is the second-largest operation of its kind in the world after Bank of America with $1.554 trillion in assets according to a compilation by Scorpio Partnership.
UBS was one of the banks hardest hit by the financial crisis when its fixed-income unit racked up more than $50 billion in losses after gorging on subprime securities, forcing it to seek a bailout from the Swiss government.
After settling a damaging U.S. tax probe in 2009, the bank had just started to rebuild client confidence when the $2.3 billion trading scandal surfaced in September last year.
Kweku Adoboli, who worked on the bank's London-based exchange-traded equities funds desk, has pleaded not guilty to two counts of fraud and four of false accounting over the costly bets. His trial is under way in London.
The overhaul expected to be announced on Tuesday comes against the backdrop of far tougher regulation on riskier securities trading activities, and would represent a return to advisory roots stemming from UBS's purchase of Warburg, a British merchant bank, in 1995.
UBS stock rose sharply on Monday, with investors cheered by the prospect of the bank paying out to shareholders the capital freed up as a result of the overhaul.
However, there is still plenty of uncertainty surrounding the plans to wind down the fixed-income arm, which includes activities such as trading in commodities and credit. Analysts say there are few precedents of a bank winding down such a big operation, making it hard to gauge the cost the move.
"We will need to see whether they can run down the assets and the cost base without disruptive losses," Barclays analysts Jeremy Sigee and Kiri Vijayarajah wrote in a note to investors.
The expected UBS cuts will add to the tens of thousands of jobs the financial sector has shed globally since the financial crisis of 2008. UBS's investment bank and fixed-income business in particular was the object of public anger in Switzerland following the 2008 government bailout.
UBS's private bank also faces challenges, with profits falling as Swiss banking secrecy is weakened by repeated demands from foreign governments determined to recoup tax on undeclared funds held in offshore accounts.
UBS's rival Credit Suisse (CSGN.VX) said last week it was also making more cost cuts as part of efforts to bolster its profits and capital position.
The UBS overhaul is expected to be announced alongside what analysts forecast to be a 55 percent drop in third-quarter net profit.
(Reporting By Katharina Bart. Additional reporting by Sarah White and Sophie Sassard in London.)
http://www.reuters.com/article/2012/10/29/us-ubs-idUSBRE89S1BU20121029
ly t� 7 c p h v � j sus as their savior and see the truth if I am not able to help them find it myself. When everything hits the fan in this country, I’d rather be with my family, hopefully getting them to know the Lord and Bible prophecy using info I’ve gathered from you and others, instead of fighting some controlled war in Iran or fighting off a Chinese invasion which we are doomed to fail since the Lord is pouring judgement on this country for all our sins (homosexuality, abortion, atheism/new age religions, etc., etc.). Thank you for your time if you read this entire email, it would mean a lot to me if you sent me some prayers and I will continue to pray to the Lord to help my family get saved. Until something happens I will do my best to educate my family over the internet/phone.
Thank you for your time, and keep up the great work Brother Eric,
Brother in Christ,
William
____________________________________________
Dear Brother William,
What an incredible email you have just written.
As to your family’s salvation in Christ, I shall pray for them that God would open their understanding to the light of the true gospel of the risen Lord Jesus Christ as stated in I Corinthians 15:1-4. We shall plant and water; God will give the increase dear brother.
Thank you for being truthful on all points addressed which includes the blatant anti-White, Black hateful racism against all Whites in general. I experienced this same outrageous treatment when in the Air Force from 1972-1977. The US military is pro-Black/anti-White, pro-sodomite/anti-straight, pro-female/anti-male, and as you said, is a combination of fascism and communism. And why has the Order done this to the once greatest military fighting force in world history? To ensure its demoralization, debauchery and future defeat in the coming war with China, Russia and the united Muslim world of nations.
Therefore, you made a mistake in joining the US military, but it was done in ignorance and God will be gracious to you now that you seek to reverse your course. You have repented and turned to the right path of seeking to exit the military. I have prayed for you in the quest to leave without a dishonorable discharge, something to be avoided at all costs. You must remain credible and maintain your honor, both of which would be lost to a DD.
The following is what I would do. First, I would compose a letter to your commanding officer nearly identical with what you have written above. Tell him of the hateful Black-on-White racism and the pro-sodomite, pro-female policies of the Army, all of which is intolerable as a heterosexual White man and as a Bible Believing Christian. I would then tell him of your conviction that the Jesuits ruling the Vatican control the American military and are using it for Rome’s purposes of restoring the pope’s Temporal Power around the world—including the present papal crusade against Shia Islam. I would then tell your commander that you believe 911 was a “black-op” of the American Intelligence Community overseen by Cardinal Egan’s key Knight of Malta and DCI at the time, Jesuit Georgetown University-trained George J. Tenet. And thus, every drop of blood that has been shed in Afghanistan and Iraq is innocent blood for which we will be held accountable by the One True God and his Son, the Risen Lord Jesus Christ.
I would then conclude with these facts:
“1. I can no longer carry out my oath in good faith as a soldier of the US Army. For this Army that I joined, thinking that I was contributing in protecting my country, is really a killing machine for the pope of Rome. We are garrisoned around the world for one reason: the benefit of the Jesuit papacy. This renders me unable to carry out orders in the field, the Pope of Rome being my real commander.
“2. I am concerned for the future domestic safety of my country and family and would rather defend America within our borders from traitors within and invaders without, including the Alien Roman Catholic Mexican invaders filling the southwest with robbery, rape and murder. My Army refuses to protect Americans from these threats to the nation’s very survival. This makes me a party to the crime.
“3. I am also concerned over the developing White backlash (due to the anti-White Middle class policies of the present Obama Administration) that is leading to the establishment of a New Right, fascist military dictatorship which, in the end, intends to kill every Jew in North America. My Army will be “the sword” in the hand of this coming dictator. This will make me a party to that unthinkable crime that will result in the curse upon all those who persecute the racial seed of Abraham—the Hebrew/Jewish/Israelites—pronounced in Genesis 12:1-3.
“4. I am concerned that Roman Catholic Knight of Malta Newt Gingrich will become the next American president, who may well launch the attack into Iran. I believe his will be the final straw the will break the proverbial camel’s back. Russia will enter the war and from then on, it will be an orchestrated annihilation of targeted populations, Americans being one of those targets. This will make me a party to the crime of domestic and foreign civilian murder under the guise of fighting “the War on Terror.”
“Based upon the above, I am now requesting an honorable discharge or a medical discharge from active military service. I love my country and love the legal purpose of my American Army, which is to protect and defend America from domestic insurrection and foreign invasion. But since this is not the real purpose of the US Army of which I voluntarily joined, I hereby request an immediate meeting with you, my commander, to converse with you personally and begin the necessary paperwork for my honorable discharge from active duty. I can no longer be a knowing party to the crimes of the American military serving the criminal, imperialistic designs of the Jesuit-ruled, Roman papacy.”
Such would be my approach, dear brother William.
Lord bless,
Brother Eric
http://www.vaticanassassins.org/white-american-army-soldier-realizes-he-is-a-mercenary-for-jesuit-roman-papacy/
No comments:
Post a Comment